<PAGE>
 
================================================================================

                      SECURITIES AND EXCHANGE COMMISSION

                             Washington, DC  20549

                                   Form 10-Q

[X]    Quarterly Report pursuant to Section 13 or 15(d) of the Securities
       Exchange Act of 1934

For the quarter ended      March 31, 1997
                      -----------------------------

[_]    Transition Report Pursuant to Section 13 or 15(d) of the Securities
       Exchange Act of 1934

For the transition period from  _______________________

Commission File Number   0-26138
                       --------------

                         Dendrite International, Inc.
                         ----------------------------
            (Exact name of registrant as specified in its charter)

            New Jersey                                            22-2786386
--------------------------------                             -------------------
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)


                            ----------------------

                            1200 Mt. Kemble Avenue
                             Morristown, NJ  07960
                                 201-425-1200

                            ----------------------

                  (Address, including zip code and telephone
                 number (including area code) of registrant's
                         principal executive offices)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the last 90 days
y   X    n ____
  -----        


Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date.

           Class                   Shares Outstanding at May  13, 1997
     ---------------------         -----------------------------------
         Common Stock                          11,142,631
                                               ----------


================================================================================
<PAGE>
 
                         DENDRITE INTERNATIONAL, INC.
                                     INDEX

<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
------------------------------

  ITEM 1. Financial Statements (unaudited)                                             PAGE NO.
                                                                                       --------
<S>                                                                                    <C> 
          Consolidated Statements of Operations
            Three months ended March 31, 1997 and 1996................................     3

          Consolidated Balance Sheets
            March 31, 1997 and December 31, 1996......................................     4

          Consolidated Statements of Cash Flows
            Three months ended March 31, 1997 and 1996................................     5

          Notes to Consolidated Financial Statements..................................     6

  ITEM 2. Management's Discussion and Analysis of Financial Condition
          and Results of Operations...................................................     7

PART II - OTHER INFORMATION
---------------------------

  ITEM 6. Exhibits and Reports on Form 8-K............................................    11

          Signatures..................................................................    11
</TABLE>

                                       2
<PAGE>
 
PART 1 - FINANCIAL INFORMATION
------------------------------

     Item 1.  Financial Statements




                         DENDRITE INTERNATIONAL, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In thousands, except per share data)
                                  (unaudited)

<TABLE> 
<CAPTION> 
                                               Three Months Ended
                                                    March 31,
                                                    ---------
                                               1997          1996
                                             --------      ---------
<S>                                          <C>           <C> 
REVENUES:
 License fees                                $ 1,094        $ 1,873
 Services                                     15,548         12,351
                                           ---------     ----------
                                              16,642         14,224
                                           ---------     ----------
 
COST OF REVENUES:
 Cost of license fees                            273            185
 Cost of services                              9,208          5,782
                                           ---------     ----------
                                               9,481          5,967
                                           ---------     ----------
 
     Gross margin                              7,161          8,257
                                           ---------     ----------
 
OPERATING EXPENSES:
      Selling, general and administrative      6,373          5,235
      Research and development                 1,270          1,520
                                           ---------     ----------
                                               7,643          6,755
                                           ---------     ----------
 
     Operating income (loss)                    (482)         1,502
 
INTEREST EXPENSE                                   5              3
OTHER EXPENSE                                    (76)          (237)
                                           ---------     ----------
 
     Income (loss) before income taxes          (411)         1,736
 
INCOME TAXES (Benefit)                          (145)           661
                                           ---------     ----------
 
NET INCOME (Loss)                            $  (266)       $ 1,075
                                           =========     ==========
NET INCOME (Loss) PER SHARE                   $(0.24)         $0.10
                                           =========     ==========
SHARES USED IN COMPUTING
  NET INCOME (Loss) PER SHARE                 11,225         11,246
                                           =========     ==========
</TABLE>

       The accompanying notes are an integral part of these statements.

                                       3
<PAGE>
 
                         DENDRITE INTERNATIONAL, INC.
                          CONSOLIDATED BALANCE SHEETS
                     (In thousands, except per share data)
                                  (unaudited)





<TABLE>
<CAPTION>
                                                               March 31,   December 31,
                                                                  1997       1996
                                                               ----------  ---------
<S>                                                            <C>         <C>  
                           ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                                      $ 4,053    $10,912
  Short-term investments                                           7,329      8,421
  Accounts receivable                                             23,105     18,732
  Prepaid expenses and other                                       2,047      1,569
  Prepaid income taxes                                             1,397      1,397
  Deferred tax assets                                              1,457      1,457
                                                             ------------  -----------
      Total current assets                                        39,388     42,488
PROPERTY AND EQUIPMENT, net                                        3,242      3,391
CAPITALIZED SOFTWARE DEVELOPMENT COSTS, net                        2,644      2,589
GOODWILL, net                                                        704        747
                                                             ------------  -----------
                                                                 $45,978    $49,215
                                                             ============  ===========
     LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
   Accounts payable                                                2,189    $ 3,344
   Income taxes payable                                              436        584
   Accrued compensation and benefits                               2,081      2,446
   Other accrued expenses                                          3,993      3,329
   Deferred revenues                                               1,100      2,099
                                                             ------------  -----------
        Total current liabilities                                  9,799     11,802
                                                             ------------  -----------
 
DEFERRED RENT                                                        689        726
                                                             ------------  -----------
 
DEFERRED TAXES                                                     1,564      1,511
                                                             ------------  -----------
 
STOCKHOLDERS' EQUITY:
   Preferred stock, no par value, 10,000,000 shares
      authorized, none issued                                          -          -
   Common stock, no par value, 50,000,000 shares
       authorized:  11,262,131 and 11,163,631 shares issued      
       and 11,142,631 and 11,163,631 outstanding                  32,139     32,198
      Retained earnings                                            4,392      4,658
   Deferred compensation                                          (1,063)    (1,227)
   Cumulative translation adjustments                               (367)      (453)
                                                            
    Less Treasury Stock                                           (1,175)         -
                                                             ------------  ----------- 
       Total stockholders' equity                                 33,926     35,176
                                                             ------------  ----------- 
                                                                 $45,978    $49,215
                                                             ============  ===========
</TABLE>

The accompanying notes are an integral part of these statements.

                                       4
<PAGE>
 
                         DENDRITE INTERNATIONAL, INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (In thousands)
                                  (unaudited)

<TABLE>
<CAPTION>
                                                                           Three Months Ended
                                                                                 March 31,    
                                                                                 ---------
                                                                         1997           1996
                                                                        -------        -------
 
<S>                                                                   <C>           <C> 
OPERATING ACTIVITIES:
Net income (loss)                                                     $  (266)       $ 1,075
Adjustments to reconcile net income (loss) to net cash provided by
   (used in) operating activities:
   Depreciation and amortization                                          340            446
   Changes in assets and liabilities:
      Increase in accounts receivable                                  (4,373)          (560)
      (Increase) decrease in prepaid expenses and other                  (478)           186
      Increase (decrease) in accounts payable and accrued expenses       (856)           774
      Decrease in deferred rent                                           (37)           143
      Increase (decrease) in income taxes payable                        (148)        (2,105)
      Increase (decrease) in deferred revenues                           (999)           318
                                                                    ---------     ----------
         Net cash provided by (used in) operating activities           (6,817)           277
                                                                    ---------     ----------
 
INVESTING ACTIVITIES:
  Purchases of short-term investments                                    (535)        (1,261)
  Sales of short-term investments                                       1,627          2,206
  Purchases of property and equipment                                     (22)           (72)
  Additions to capitalized software development costs                    (181)          (285)
                                                                    ---------     ----------
         Net cash provided by (used in) investing activities              889            588
                                                                    ---------     ----------
 
FINANCING ACTIVITIES:
  Issuance of Common Stock from stock
    offering, net                                                           -          4,450
  Purchase of Treasury Stock                                           (1,175)             -
  Issuance of Common Stock                                                 90            141
                                                                    ---------     ----------
         Net cash provided used in financing activities                (1,085)         4,591
                                                                    ---------     ----------
                                                                    ---------     ----------
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH                           154             (4)
                                                                    ---------     ----------
NET INCREASE/(DECREASE) IN CASH                                        (6,859)         5,452
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                         10,912         11,530
                                                                    ---------     ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                              $ 4,053        $16,982
                                                                    =========     ==========
</TABLE>

       The accompanying notes are an integral part of these statements.

                                       5
<PAGE>
 
                         DENDRITE INTERNATIONAL, INC.
             NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


1.   BASIS OF PRESENTATION

          The consolidated financial statements as of March 31, 1997 and for
      the three month period ended March 31, 1997 and 1996 are unaudited and
      reflect all adjustments (consisting only of normal recurring adjustments)
      which are, in the opinion of management, necessary for a fair presentation
      of the financial position and operating results for the interim periods.
      The consolidated financial statements should be read in conjunction with
      the notes thereto, together with management's discussion and analysis of
      financial condition and results of operations, contained in this report on
      Form 10-Q. Reference should be made to the Form 10-K as of and for the
      year ended December 31, 1996 for Dendrite International, Inc. and
      subsidiaries, the Company, for additional disclosures including a summary
      of the Company's accounting policy.

          In the opinion of management, the consolidated financial statements
      contain all adjustments consisting of normal recurring accruals necessary
      to present fairly the consolidated financial position of the Company for
      the periods presented. The interim operating results of the Company may
      not be indicative of operating results for the full year.

2.   SALE OF COMMON STOCK

           The Company consummated a public offering of its Common Stock which
      closed on March 13, 1996. The Company offered and sold 300,000 shares of
      Common Stock at a public offering price of $18.25 per share. The net
      proceeds to the Company from the public offering, after payment of
      offering expenses, were approximately $4,295,000. An additional 2,805,000
      shares of Common Stock (including 405,000 shares purchased by the
      underwriters upon the exercise in full of over-allotment options) were
      offered and sold by certain stockholders of the Company. The Company did
      not receive any proceeds from the sale of shares by selling stockholders.

3.    NET INCOME (LOSS) PER SHARE COMPUTATION

           Net income (loss) per share was calculated by dividing net income
      (loss) by the weighted average number of common shares and dilutive common
      share equivalents (computed using the treasury stock method) outstanding
      during the period, except where anti-dilutive.

4.     ACQUISITION OF SRCI

           On May 1, 1996, the Company acquired 100% of the capital stock of
      SRCI, S.A., (SRCI) for approximately $3,198,000 and transaction costs of
      $302,000.  The purchase was accounted for under the purchase method of
      accounting, whereby the purchase price is allocated to the assets acquired
      and liabilities assumed of SRCI based on their fair market values at the
      acquisition date.  The excess of purchase price over the fair value of net
      assets acquired was assigned to identifiable intangibles.  The company
      assigned $2,640,000 to in-process research and development and such amount
      was written-off in the three months ended June 30, 1996.  The Company
      also recorded $860,000 as goodwill. SRCI's results of operations have been
      included in the Company's consolidated financial statements from the date
      of acquisition.

5.         In February 1997, the Financial Accounting Standards Board (FASB) 
      issued Statement of Financial Accounting Standards (SFAS) No. 128,
      "Earnings Per Share", which the Company is required to adopt for both
      interim and annual periods ending after December 5, 1997. SFAS No. 128
      simplifies the EPS calculation by replacing primary EPS with basic EPS.
      Basic EPS is computed by dividing reported earnings available to common
      stockholders by weighted average shares outstanding. Fully diluted EPS,
      now called diluted EPS, is still required. Early application is
      prohibited, although footnote disclosure of proforma EPS amounts computed
      is required. The adoption of SFAS 128 would have no impact for the periods
      presented.

                                       6
<PAGE>
 
       Item 2. Management's Discussion and Analysis of Financial Condition and
       Results of Operations

      Overview
      --------

           Dendrite International, Inc. ("Dendrite" or the "Company") succeeded
      in 1991 to a business co-founded in 1986 by the Company's President and
      Chief Executive Officer and others. That business was organized to provide
      comprehensive Electronic Territory Management ("ETM") solutions to be used
      to manage, coordinate and control the activities of large sales forces in
      complex selling environments, primarily in the ethical pharmaceutical
      industry. Today, the Company's solutions combine advanced software
      products with a wide range of specialized support services including
      implementation services, technical and hardware support services and sales
      force support services. The Company develops, implements and services
      advanced ETM systems in the United States, Canada, Western Europe, Japan,
      Australia, New Zealand, Hong Kong and Brazil through its own sales,
      support and technical personnel located in twelve offices worldwide.

           The Company generates revenues from two sources: fees from support
      services and license fees. Service revenues, which account for a
      substantial majority of the Company's revenues, consist of fees from a
      wide variety of contracted services which the Company makes available to
      its customers, generally under multi-year contracts. Implementation fees
      are generated from services provided to design and implement the ETM
      solution for the customer. Technical and hardware support fees are derived
      from services related to the operation of the customer's file server and
      from the provision of ongoing technical and customer service support
      including customization of the software following implementation. Sales
      force support fees are derived from organizing and managing support for
      the customer's sales force.

           License fees are charged by the Company for use of its proprietary
      computer software.  Customers generally pay one-time perpetual license
      fees based upon the number of users, territory covered and the number of
      functions in the particular system licensed by the customer.  The Company
      recognizes one-time license fees as revenue using the percentage of
      completion method over a period of time that commences on the date of
      delivery of the software to the licensee and ends on the date that initial
      customization, as defined in each contract, is complete.  For license
      contracts that contain customer acceptance provisions, revenue is not
      recognized until such time as the acceptance provisions are satisfied.  To
      date there have been no instances in which customer acceptance provisions
      have led to nonpayment of license fees.  Additional license fees are
      payable when customers agree to license additional functions or
      enhancements, acquired an upgraded version of the Company's software
      and/or when the maximum number of users or initial geographic coverage is
      exceeded. The Company has, in the past, made available an alternative
      license fee arrangement known as a "capitation" agreement under which the
      customer licenses Dendrite software and upgrades for an increasing preset
      annual charge over a specified term (currently up to 10 years). The fee in
      these cases encompasses all users in all geographic regions, and covers
      all maintenance fees and upgrades. One customer has executed a capitation
      agreement to date.

           Currently, the Company's products are marketed in over 16 countries.
      The United States, the United Kingdom and France are the Company's main
      markets. Approximately 44% and 42% of the Company's total revenues were
      generated outside the United States during the periods ended March 31,
      1996 and March 31, 1997 respectively. Services provided by Dendrite's
      foreign branches and subsidiaries are billed in local currency. License
      fees for Dendrite products are billed in U.S. dollars regardless of where
      they originate. The Company expects its foreign operations to

                                       7
<PAGE>
 
      grow and to continue to account for a material part of its revenues.
      Operating results generated in local currencies are translated into United
      States dollars at the average exchange rate in effect for the reporting
      period.

           The Company markets its products and services to customer personnel
      in their management information services department and in either their
      sales management or sales administration department.  However, senior
      management or even the board of directors of a customer may be involved
      due to the costs involved.  The Company believes that its customers and
      potential customers may make detailed financial analyses of these costs
      and the expected benefits to them of licensing a Dendrite ETM system,
      although the results of such analyses generally are not disclosed to the
      Company.

      Results of Operations
      ---------------------

       THREE MONTHS ENDED MARCH 31, 1996 AND 1997

           REVENUES. Total revenues increased $2,418,000 or 17% from $14,224,000
      in the three months ended March 31, 1996 to $16,642,000 in the three
      months ended March 31, 1997 as a result of an increase in the installed
      base of Dendrite systems, both from new and existing customers for 
      Dendrite Pharmaceutical and the acquisition of SRCI in May, 1996.
      Fluctuations in the Company's revenues depend on a number of factors, some
      of which are beyond the Company's control.  These factors include, among
      others, the timing of contracts, delays in customer acceptance of the
      Company's software, the length of the sales cycless, customer budget
      changes and changes in pricing policy by the Company or its competitors.

           License fee revenues decreased to $1,094,000 in the three months
      ended March 31, 1997 from $1,873,000 in the three months ended March 31,
      1996. This decrease was primarily attributable to the recognition of
      revenue related to one time license fees for a major worldwide client
      during the period ending March 31, 1996. The Company typically expects to
      realize a greater percentage of its license fee revenues for the year in
      the last two quarters of the year with a lower percentage in the first two
      quarters of the year.

           Service revenues increased 26% from $12,351,000 in the three months
      ended March 31, 1996 to $15,548,000 in the three months ended March 31,
      1997. These quarterly increases in service revenues are primarily the
      result of an increase in the Company's installed base of Dendrite systems
      both from new and existing customers and, to a lesser extent, the
      increased marketing of services to SRCI S.A.'s customers into the
      consumer packaged goods market.

           COST OF REVENUES.  Cost of revenues increased 59% from $5,967,000 in
      the three months ended March 31, 1996 to $9,481,000 in the three months
      ended March 31, 1997 primarily due to an increase in the number of service
      representatives and technical staff and, to a lesser extent, an increase
      in associated support costs as a result of the delayed implementations
      from the last quarter. 

           Cost of license fees represent the amortization of capitalized
      software development costs.  Cost of license fees increased from $185,000
      in the three months ended March 31, 1996 to $273,000 in the three months
      ended March 31, 1997.  This increase was due to the amortization of
      software development  costs capitalized in 1996 which began to be
      amortized in 1997.

           Cost of services increased from $5,782,000 in the three months ended
      March 31, 1996 to $9,208,000 in the three months ended March 31, 1997. As
      a percentage of service revenues, cost of services increased from 47% of
      service revenues for the three months ended March 31, 1996 to 59% of
      service revenues for the three months ended March 31, 1997. This increase
      was attributable to hiring personnel for training, customer service and
      technical support for the seven customer delayed implementations discussed
      above, and to higher costs associated with retaining a significant number
      of independent contractors to complete client deliverables.

                                       8
<PAGE>
 
           SELLING, GENERAL AND ADMINISTRATIVE (SG&A).  SG&A expenses increased
      22% from $5,235,000 in the three months ended March 31, 1996 to $6,373,000
      in the three months ended March 31, 1997. As a percentage of revenues,
      SG&A expenses increased from 37% for the three months ended March 31, 1996
      to 38% for the three months ended March 31, 1997. This increase was
      primarily attributable to increased staff and, to a lesser extent, an
      increase in facilities growth to support operations and sales.

           RESEARCH AND DEVELOPMENT.  Research and development expenses
      decreased 16% from $1,520,000 in the three months ended March 31, 1996 to
      $1,270,000 in the three months ended March 31, 1997, while decreasing to
      8% as a percentage of revenues. The decrease in research and development
      expenses in 1997 is attributed to the winding down of efforts required on 
      development of the Company's Series 6 software product.

           PROVISION (BENEFIT) FOR INCOME TAXES. The Company's effective tax
      rate was 35% for the three months ended March 31, 1997 as compared to a
      provision of 39% for the three months ended March 31, 1996.

      VARIABILITY OF QUARTERLY RESULTS

           Fluctuations in the Company's quarterly revenues depend on a number
      of factors, some of which are beyond the Company's control. These factors
      include, among others, the timing of contracts, delays in customer
      acceptance of the Company's software, the length of the sales cycle,
      customer budget changes and changes in the pricing policy by the Company
      or its competitors. The Company establishes its expenditure levels for
      product development and other operating expenses based in large part on
      its expected future revenues. As a result, should revenues fall below
      expectations, operating results are likely to be adversely and
      disproportionately affected because only a small portion of the Company's
      expenses vary with its revenues. In addition, the Company's quarterly
      revenues from software license fees and related income may vary due to
      seasonal and cyclical factors. The Company typically realizes a greater
      percentage of its license fees and service revenues for the year in the
      second half of the year with a lower percentage in the first half.
      However, the interplay between this seasonal pattern and the long selling
      cycles for the Company's products means that actual results may vary from
      this expectation for a given year. In the future, to the extent the
      percentage of revenue from service revenues from existing customers of the
      Company continues to increase, seasonal and cyclical trends in the
      Company's revenues may be reduced.


      LIQUIDITY AND CAPITAL RESOURCES

           The Company has historically financed its operations primarily
      through cash generated by operations. Net cash used in operating
      activities was $6,817,000 during the three months ended March 31, 1997
      compared to cash provided by operating activities of $277,000 during the
      three months ended March 31, 1996. Cash used in operating activities for
      the three months ended March 31, 1997 increased compared to the three
      months ended March 31, 1997 primarily due to the net loss and an increase
      in accounts receivable, decreases in accounts payable and deferred
      revenue.

           The Company had $889,000 of cash provided by investing activities
       in the first three months of 1997 compared to $588,000 in the first three
       months of 1996. The increase is primarily attributable to a reduction in
       investment purchases during the quarter. The Company's net cash provided
       by financing activities has been limited to the issuance of common stock
       from the exercise of stock options issued under the Corporation's 1992
       Stock Plan.

                                       9
<PAGE>
 
           The Company maintains a $5,000,000 revolving line of credit agreement
       with Chase Manhattan Bank N.A. The agreement provides for borrowings up
       to $1,000,000 in local currencies directly by the Company or certain of
       its overseas subsidiaries and is available to finance working capital
       needs and possible future acquisitions. The $5,000,000 line of credit is
       secured by substantially all of the Company's assets. The $5,000,000 line
       of credit agreement requires the Company to maintain a minimum
       consolidated net worth, among other covenants, measured quarterly which
       is equal to the Company's net worth as of December 31, 1994 plus 50% of
       net income earned after December 31, 1994. This covenant has the effect
       of limiting the amount of cash dividends the Company may pay. At March
       31, 1997 there were no borrowings outstanding under the agreement.

           At March 31, 1997, the Company's working capital was approximately
       $29,589,000. The Company has no significant capital spending or
       purchasing commitments other than normal purchase commitments and
       commitments under facility and capital leases. The Company believes that
       the proceeds from the offering, available funds, anticipated cash flows
       from operations and its line of credit will satisfy the Company's
       projected working capital and capital expenditure requirements through at
       least the next two years.

                                       10
<PAGE>
 
       Item 6.  Exhibits and Reports on Form 8-K


            (a)  The Company is furnishing the following exhibit in connection
       with this report:
  
                     10.1   Employment Agreement dated as of March 25, 1997 with
                            John E. Bailye.

            (b)  The Company did not file any Reports on Form 8-K during the
       quarter for which this report is filed.



                                  Signatures


      Pursuant to the requirements of the Securities Exchange Act of 1934, the
      registrant has duly caused this report to be signed on its behalf by the
      undersigned thereunto duly authorized.


      Date:  May 15, 1996


                                    DENDRITE INTERNATIONAL, INC.
                                    (Registrant)



                                    By: /s/ John E. Bailye
                                        -------------------------------------
                                        John E. Bailye, President and
                                        Chief Executive Officer



                                    By: /s/ Charles Warczakowski
                                        ------------------------------------
                                        Charles Warczakowski, V. P. Finance and
                                        Treasurer (Principal Financial Officer)

                                       11
<PAGE>
 
                                 EXHIBIT INDEX

Exhibit No.                                 Exhibit
-----------                                 -------

 10.1                       Employment Agreement dated as of March 25, 1997
                            with John E. Bailye